China’s Third Plenum: Political Control Drives Economic Reforms

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China’s Third Plenum: Political Control Drives Economic Reforms - The Diplomat

Quick Summary:

Xi stated that “international competition” is heating up and that China must control “core technologies.” Persistent tensions between China and the West will continue to create uncertainties for foreign businesses in China, especially in sensitive sectors.

Beijing is likely to make incremental reforms to improve the business environment for private companies in key sectors such as AI, electric vehicles, renewable energy, information technology, biotech, and advanced manufacturing.

Beijing again signaled that economic reforms must take place in the context of greater CCP control and Xi’s centrality in economic policy.